Securities Industry Regulations (Amendment) (Cth)

Statutory Rules 1986 No. 351

Securities Industry Regulations2

(Amendment)

I, THE GOVERNOR-GENERAL of the Commonwealth of Australia, acting pursuant to section 4 of the Acts Interpretation Act 1901 and with the advice of the Federal Executive Council, being advice that, as required by sub-section 150 (5) of the Securities Industry Act 1980,is consistent with resolutions of the Ministerial Council for Companies and Securities, hereby make the following Regulations under the Securities Industry Act 1980 as amended by Part VII of the Companies and Securities Legislation (Miscellaneous Amendments) Act 1985.

Dated 13 March 1986.

N. M. STEPHEN

Governor-General

By His Excellency’s Command,

Lionel Bowen

Attorney-General

 

Prescribed offices under section 5 of the Act

1. Regulation 6 of the Securities Industry Regulations is amended by omitting paragraph (3) (zd) and substituting the following paragraph:

“(zd) the office of the Public Trustee under the Administration and Probate Ordinance 1929 and the Public Trustee Ordinance 1985 of the Australian Capital Territory;”.

Repeal

2. Regulation 12 of the Securities Industry Regulations is repealed.

Application for licence to be in sealed envelope

3. Regulation 16 of the Securities Industry Regulations is amended by omitting “12,”.

4. After regulation 19 of the Securities Industry Regulations the following regulations are inserted:

 

(S.R. 25/86)—Cat. No.  14/21.2.1986

 

Conditions to which licence is subject: property trusts

“19a. (1) In this regulation—

‘property trust’ means an undertaking, including a scheme, enterprise, contract or arrangement, established or promoted for the purpose of or that has the effect of—

(a) the offering to, or holding by, persons of prescribed interests held, or to be held, as beneficial interests under a trust; and

(b) the holding under the trust of property 50% or more of which is, or is likely to be, real property;

‘real property’ includes a lease of real property but does not include a mortgage over real property.

“(2) For the purposes of section 51 of the Act, a licence is subject to a condition that, where the holder of the licence makes, expressly or by implication, a recommendation with respect to the acquisition of a prescribed interest in a property trust to a person who may reasonably be expected to rely on the recommendation, the holder of the licence shall—

(a) if the recommendation is made orally—

(i) when making the recommendation—disclose to that person orally; and

(ii) before the acquisition by that person of a prescribed interest in the property trust and in any case not later than the fourth business day after making the recommendation-confirm in writing given, or sent by post, to that person; or

(b) if the holder of the licence makes the recommendation in writing-set out in that writing, in a type not less legible than the writing in which the recommendation is made,

full particulars of—

(c) any commission, fee or other benefit, pecuniary or otherwise, direct or indirect, that the holder of the licence, or an associate of the holder of the licence, has received, or will or may receive, for or in connection with the making of the recommendation or the acquisition by that person of a prescribed interest in that or another property trust as a result of the recommendation; and

(d) any other pecuniary or other interest, direct or indirect, of the holder of the licence, or an associate of the holder of the licence, that may reasonably be expected to be capable of influencing the holder of the licence in making the recommendation,

other than a commission, fee or other benefit that the holder of the licence has received, or will or may receive from that person for or in connection with the making of the recommendation or the acquisition by that person of a prescribed interest in that or another property trust as a result of the recommendation.

Supervision by licence holders

“19b. (1) In this regulation ‘property trust’ has the same meaning as in sub-regulation 19a (1).

 

“(2) For the purposes of section 51 of the Act, a licence is subject to a condition that the holder of the licence shall take reasonable steps to supervise the conduct of persons who are concerned with dealing in, or advising on, interests in property trusts, being persons for whose actions the holder has a responsibility, to prevent contravention by them of the provisions of the Securities Industry Act 1980, these Regulations, the Companies Act 1981,the Companies Regulations and the corresponding legislation of participating States and Territories.”.

5. The Securities Industry Regulations are amended by inserting after regulation 49 the following regulation:

Futures contracts

“50. For the purposes of paragraph 150 (2) (ca) of the Act, the provisions of the Act do not have effect in relation to a transaction effected by virtue of a futures contract—

(a) that is effected on a market of the Sydney Futures Exchange Limited; and

(b) that relates only to securities.”.

Form 3

6. Schedule 1 to the Securities Industry Regulations is amended by omitting Form 3.

Further amendments relating to securities exchanges

7. The Securities Industry Regulations are amended as set out in the Schedule.

 

SCHEDULE Regulation 7

FURTHER AMENDMENTS OF THE SECURITIES INDUSTRY REGULATIONS RELATING TO SECURITIES EXCHANGES

1. The following provisions of the Securities Industry Regulations are amended by omitting “stock exchange” (wherever occurring) or “Stock Exchange” (wherever occurring) and substituting “securities exchange”:

Regulation 28; regulation 30; paragraphs (d), (e) and (f) of Item 7, Item 8, Direction (1) and paragraph (a) of Direction (5) of Form 4; paragraphs (a), (b) and (c) of Item 8 of Form 5; paragraphs (d), (e) and (f) of Item 2 of Form 6; sub-paragraphs (b) (iv), (v) and (vi) of Item 3 of Form 9; paragraph (d) of Item 5 and Direction (1) of Form 10; paragraph (c) of Item 7 of Form 11; under the headings ‘Current Assets’ and ‘Non-Current Assets’ in Form 15; and Forms 21 and 22.

2. The Securities Industry Regulations are amended by omitting “stock exchange”from Form 20 and substituting “securities exchange”.

3. The Securities Industry Regulations are amended by omitting “STOCK EXCHANGE” from Forms 21 and 22 and substituting “SECURITIES EXCHANGE”.

 

NOTES

1. Notified in the Commonwealth of Australia Gazette on 21 March 1986.

2. Statutory Rules 1981 No. 127 as amended by 1982 Nos. 124 and 125; 1983 Nos. 108 and 303.

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